The World Bank projects that the gross domestic product (GDP) of Serbia will record a drop of 0.5% in 2020 due to the negative effects of the coronavirus pandemic on economic activities, which is far less than the drop projected for Europe and some other countries in the region.
In its updated spring report on the economic prospects for Europe and Central Asia, published on its website, the World Bank estimates that the European economy will drop into a recession of -2.8% to -4.4%.
When it comes to the countries of the region, this international financial institution projects a drop in Croatia's economy of 6.2%, as well as 1.9% in Bosnia and Herzegovina, 1.3% in Montenegro and 0.4% in North Macedonia.
The COVID-19 pandemic and the related containment measures are having a heavy toll on the global economy and will certainly affect the Serbian economy leading to a much lower growth than previously projected, the WB says in the section on Serbia.
The Serbian economy, it is added is affected through several channels including the lower tourism and transport revenues, lower remittances, decelerating exports growth and lower FDI and investment overall.
According to the World Bank, in Serbia, private consumption will drop by 0.4%, government consumption will grow by 1.1%, exports will drop by 0.5%, whereas import will drop by 0.8%. Gross fixed capital investment will drop by 2.3%.